How to write a trade quote that wins the job

The short answer: a quote that wins work tells the customer exactly what they are getting, what they are not getting, what it costs in total, and how long the price holds. Vague quotes lose to clear ones, even when the clear one costs more.

Before you write it

Ask the questions that change the price while you are still on site. What does the customer want finished, and by when? What is behind the wall, under the floor or up on the roof that you have not seen yet? Who else is on the job, and what do you need done before you start? Every answer you get now is a variation you will not have to argue about later.

Know your number before you price anything. If you are not sure your hourly rate covers your costs, run it through the hourly rate calculator first.

What to put in the quote

1. Who and when

Your business name, ABN, licence number where your trade needs one, and contact details. The customer’s name and the site address. The date of the quote and a quote number you can refer to.

2. The scope, in plain words

Describe the finished result, not just the tasks. “Supply and install a 315 litre electric hot water system in the existing laundry location, connect to existing plumbing and power, remove and dispose of the old unit” leaves far less room for disagreement than “replace hot water system”.

3. What is not included

Exclusions protect you and the customer. Common ones: making good plaster or paint, council or permit fees, work behind walls you could not inspect, and anything the customer supplies. If an exclusion is likely to come up, give an indicative price for it so the customer is not surprised.

4. The price, broken down and totalled

Break the price into labour, materials and any other costs so the customer can see where the money goes. Then give one clear total. The ACCC says businesses “must display the total price of a product or service as a single figure”, including any taxes and unavoidable fees. Extra charges that cannot be worked out as a dollar amount when you give the price do not have to be included, which is exactly why they belong in your exclusions and assumptions.

If you are registered for GST, show whether the price includes it. Showing the GST amount and the total including GST removes the question entirely.

5. Assumptions

State what the price relies on: normal access, the site being clear, the existing wiring or pipework being in serviceable condition, work during business hours. If an assumption turns out wrong, the quote already explains why the price changes.

6. How long the price holds

Give a validity period, such as 30 days. Material prices move, and an open-ended quote accepted six months later can cost you the job’s profit.

7. Payment terms

Say whether you need a deposit and how much, when progress payments fall due on longer jobs, when the final invoice is due, and how the customer can pay.

8. How to accept

Make saying yes easy: a signature, a reply to the email, or an accept button on an online quote. Record the date they accepted and which version of the quote they accepted.

When the job changes

Put variations in writing before you do the extra work: what changed, what it costs, and the customer’s agreement. A text message saying “go ahead” is better than nothing; a short written variation with a price is better still.

What you cannot quote away

Under the Australian Consumer Law, services to consumers come with guarantees: they must be carried out with due care and skill, be fit for any stated purpose, and be supplied within a reasonable time if no time frame was agreed. The ACCC is clear that these rights “can’t be taken away by anything a business says or does”, so do not write terms into a quote that try to exclude them.

Quote checklist

• Your business name, ABN, licence number and contact details.
• Customer name, site address, quote date and number.
• The finished result in plain words.
• What is not included, with indicative prices for likely extras.
• Labour, materials and other costs, plus a single total price.
• Whether GST is included, and the GST amount if you are registered.
• The assumptions the price depends on.
• How long the quote is valid.
• Deposit, progress payment and final payment terms.
• How to accept, and space to record the acceptance.

When the job is done, the invoice has its own rules. See tax invoice requirements for tradies.